zovirax cream online glucophage tabletas 500 mg levitra 20mg jellies buy kamagra soft pattaya viagra buying 2011 100mg cialis dosage diflucan generic online diflucan 150 mg costo toddler prednisone 5mg cialis 5 mg einnahme propranolol 40 mg dosage cheap cialis ed packungsbeilage viagra 100mg 10 mg phenergan orlistat cheap xenical price generic augmentin illegal buy kamagra wellbutrin 450 mg bipolar prednisone 20mg cancer buy nolvadex walgreens clomid 50mg ovulation comprar viagra 100mg thuoc viagra 25mg priligy purchase online generic wellbutrin doses switching synthroid generic prednisone online purchase amoxil 50 mg buying clomid injection get propranolol online buying viagra shanghai propranolol hcl 20mg viagra generic quality dos generic viagra liquid clomid online cheap pills cialis splitting 20mg cialis buy zithromax prescription 80 mg levitra viagra online rischi propecia cheap finasteride amoxil 500 mg toothache levitra 5 mg ausreichend buy nolvadex dropper generic cialis replacement kamagra 25 mg lexapro 15 mg price augmentin tablets 875mg scherzartikel online viagra took 2 5mg cialis bactrim online cheap cipro xl 500 buy viagra online indian buy 50mg clomid xenical 180 mg relsuts buy bactrim cheap strattera cheaper cialis took 40 mg viagra 250 mg obat erythromycin 250 mg buy zithromax tablet buy viagra price metformin buying buy cytotec ireland buy propecia men lexapro 10mg canada lisinopril 10 mg wiki lexapro 5 mg anxiety buy metformin uk cialis 40 mg sublingual cialis 20mg philippines zoloft dose 250 mg order propecia us propecia online hong cialis generico precio nexium esomeprazole 10mg chinese viagra buy will lexapro generic glucophage forte 850 mg viagra online experience nexium 20 mg nedir cheap online kamagra amoxicillin 500mg amoxil 200 mg generic viagra viagra 50mg dose propecia 1mg review buy cialis venezuela buy lisinopril 40 cvs cialis 5mg buy cialis 2.5 mg bfp 100mg clomid celebrex generic dosage Online Levitra 10 pills lasix 500 mg online durata viagra 100mg clomid challenge 50mg zoloft dosage 400 mg clomid 50 mg tabletki Cialis 5 mg Washington cheap tadalafil cialis valtrex 500 mg valor nexium 20mg esomeprazole cost viagra online hydrochlorothiazide online canada generic lexapro better amoxil 500 mg cost prednisone 20 mg prescription priligy generico 30 mg breaking 20 mg cialis cialis online compare pastile cialis 20mg tlilly cialis 100 mg 30 mg propranolol took 3 5mg cialis viagra 25 mg ceny generic celebrex same cheapgeneric cialis uk dosage cipro 500 mg hay viagra generico cialis 40mg overnight viagra online .au prospecto strattera 25 mg existe clomid 100mg safest viagra online augmentin 625mg uk generic viagra onlineusa zithromax 200 mg 5ml buy viagra trusted viagra 10 pills buy 10 mg cialis online generic viagra hypertension buy lasix pills kamagra 100mg chewable lasix furosemide online drug nexium 40mg buy zithromax brand preisvergleich cialis 20 mg 12 buy dapoxetine online cheap viagra pleasure viagra strength mg 600mg viagra order lasix drug erythromycin tablet 500 mg lisinopril 10mg. interactionn diflucan 150 mg precio viagra online pharmacy diflucan 10 mg walmart zoloft dosage 250 mg cipro 250 mg price viagra online toronto levitra 20mg alberta propecia online kopen levitra cheap achat cialis 10mg buying 40mg cialis buy bactrim liquid generic cialis source valtrex online cheap kamagra manchester buy wellbutrin 900 mg buy viagra america prednisone 7 days 20 mgs natural viagra online propranolol mk 40 mg viagra 50 mg posologie augmentin 652 mg glucophage 1000 mg prezzo buy diflucan 150mg synthroid . 2mg lexapro 5 mgs propranolol dosage 40 mg diflucan 150 mg torrino viagra buy brisbane order levitra mastercard recipe viagra online buy viagra sachets starting citalopram 5mg buy viagra chemist red viagra 600mg lexapro generic medications cheap real cialis propecia generic substitute cheap overnight cialis mg of zithromax 200 mg clomid twins valtrex generic cheapest buy viagra without buy lisinopril 40 mg augmentin 200 mg suspension order Cialis 120 prednisone biogaran 20 mg cap augmentin 625mg 1000 mg amoxil doxycycline 75 mg overdose levitra vs generic cialis wirkung 20mg cialis 40mgvs20mg cialis 10mg forum medikament zoloft 50mg acquistare levitra 5 mg priligy comprar online ferrari viagra 150mg lexapro 20 mg canada generic cialis strattera mg available prednisone streuli 50 mg viagra generico vendita cytotec pharmacy online 100 mg viagra cost glucophage generic metformin buy zovirax online cheap cialis 5mg priligy de 30 mg generic viagra egypt cheap nolvadex 20mg propranolol 10 mg migraines 25 mg zoloft pmdd pastillas levitra 10 mg levitra 20 mg treatment buy zoloft online xenical online philippines Levitra 180 pills Buy viagra de 500 mg cheap cialis 10mg generic versus lexapro merrick generic propecia viagra online discount buying cytotec online buy uk metformin order hydrochlorothiazide online lisinopril dosage generic online levitra rx cialis 2.5mg buy levitra 10mg paypal cipro 750 mg filmtabl cialis 10 mg halbieren nexium 40 mg vademecum 500 mg of valtrex buying levitra australia generic wellbutrin image chip cialis 40 mg bactrim forte 160 mg online shop viagra clomid pct 50mg experience buying cialis buy zovirax amoxil 500mg caps buspar mgs levitra 10mg effects lisinopril buyer safe generic viagra preise viagra 50 mg lexapro 20 mg tablets original lexapro online generic lexapro discount prednisone 5mg ndc viagra buy australia prospect viagra 50 mg strattera mail order cipro tabletki 500 mg 100mg viagra cost propecia order finasteride strattera 10 mg wikipedia 10 mg lisinopril cheap lexapro uk 150 mg clomid multiples levitra europe online buy nolvadex safely cialis canadian generic cialis 5 mg ansia viagra doctors online generic zovirax ingredients generic viagra echeck generic cipro hc generic viagra 10mg metformin hexal 500 mg assunzione levitra 5 mg cytotec 200 mg prix ordering propecia overseas cheap rx cialis 40mg of levitra cialis 5mg rezept xenical generic name cialis generic4all augmentin nombre generico online rezept viagra online viagra now nexium 40mg gastrite prednisone pack 5 mg glucophage 1000 mg compresse cipro cheap online zovirax generic price pet doxycycline 100mg cialis generico chile cialis sklep online cialis generico mx viagra buy tablets generic of cipro lexapro 10 mg tablets prednisone 6 day 10mg nolvadex cheap uk generic cipro 600mg zovirax tabletter 800 mg finasteride propecia 5mg viagra 6800mg levitra not generic zoloft order canada generic viagra website 100 mg kamagra tablets zovirax generic uk clomid generic multiples 2013 wellbutrin generic a 101 buy viagra zimbabwe generico do lisinopril lexapro generic launch metformin generic problems black cialis 3000 mg levitra 20mg achat levitra 20 mg viagra 2 25mg of viagra valtrex 500mg dosage viagra droga generica dreampharmaceuticals online wellbutrin cialis soft 100mg drug online viagra strattera 80 mg effects buying cialis manila cipro 250 mg uti propecia cheapest buy cytotec 100 mg viagra order india glucophage 500 mg lisinopril 10 mg safe viagra quebec online diflucan liquid buy lasix generico levitra 40 mg online viagra paypal 100mg generic viagra anygood diflucan generic buy valtrex 1000 mg dreampharmaceuticals diflucan online jual viagra 100 mg starting 20 mg lexapro buspar 10mg reviews generic strattera india doxycycline 50 mgs kamagra online nachnahme buy prednisone 1 mg cheapest viagra 800mg 20mg cialis coupons wellbutrin retard 300 mg viagra london buy viagra online japan erfahrungen online viagra metformin 500 mg 48 93 clomid online sale dosis celebrex 100 mg will levitra generic buy cialis 50mg cipro 250 mg harnwegsinfekt posologia xenical 120 mg cialis medication online 100mg viagra taking 2 cialis online ads levitra 5 mg fiyati viagra price online buy levitra walmart viagra 50mg erfahrung levitra 20mg dosierung buy 1 diflucan pill 30 mg lexapro breastfeeding wellbutrin generic withdrawal cialis 20 mg china cheap levitra 40mg nexium 20 mg tabletten cialis 20 oder 10 mg cipro online purchase cipro order cialis online no order prescription viagra wellbutrin recall generic cheappfizer viagra 100gm viagra 50 mg expiration generico do bactrim zoloft 50 mg erowid cialis 20 mg gebruik strattera generic available viagra buy can generic cialis recommended prednisone 20 mg taper cialis 20mg .at levitra online clomid 50mg generico do lexapro order zovirax cialis pills 5 mg buy lexapro lundbeck online viagra advice viagra generico c50 purchase erythromycin online generic zithromax walmart lexapro 10mg recreationally nexium 40 mg pdf viagra genericssouth africa augmentin suspension 250 mg acheter cialis generic prednisone 20mg image generic lisinopril cheap clomid 50 mg buy valtrex 500 mg generico diflucan 100mg pret lisinopril 10 mg w 929 viagra 50mg indications cheap propecia cost cheap viagra wholesale viagra 50mg cost viagra 100mg color propranolol 40 mg effects generic cialis quality tapering prednisone 50 mg bactrim 480mg cialis de 20 mgr levitra generic us clomid online drugs patente viagra generico prednisone 20mg rash zoloft 100 mg prezzo about doxycycline 100mg cheapviagrageneric viagra metformin overdose mg viagra 50 mg 2 tablet doxycycline accord 100 mg prednisone 5mg chat generic valtrex wiki viagra online sample generic valtrex manufacturer cheap valtrex 1000mg nolvadex buy canada doxycycline dose 100 mg generic propecia finasteride zovirax buy generic buy levitra packs valtrex generic 1000mg tetracycline 500 mg dosage nexium generic image 10 mg cialis dosage levitra 5 mg bayer levitra 20mg kosten mg of wellbutrin hydrochlorothiazide 12.5 mg tablet cialis cena 20 mg buy wellbutrin canada cialis 10 mg opinioni buy xenical 84 capsules cialis 20 mg interactions buy doxycycline inj. cialis de 5 mgrs synthroid generic cheap cialis web celebrex cheaper alternative buspar overdose mg celebrex dosage 200 mg zoloft 25 mg price viagra mexico generic prospecto cialis 5 mg order cs viagra viagra no.1 200mg lexapro 10mg paxil generic supplements cialis prednisone 60 mg daily prednisone 7.5 mg daily uk propecia cheap lasix 20 mg tabs zoloft mg overdose valtrex prices generic diflucan available generic lexapro 60 mg dose 150mg viagra online ordering lisinopril cialis lady 20mg cialis tabletas 20 mg viagra buying canada propecia 0.25mg kullananlar cialis lilly 5 mg buspar 30 mg reviews generic medication propecia amoxil 250 mg bula buy clomid legit edmonton viagra buy phenergan tabs 25mg zovirax 400 mg bula prednisone 30 mg online cialis 20mg test generic diflucan 150 mg kamagra 50 mg jelly online viagra cheap buy epistane nolvadex metformin 500mg pcos
Home Biz of Baseball - Interviews Interview - Andrew Zimbalist - New CBA

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 407 guests online

Atom RSS

Interview - Andrew Zimbalist - New CBA PDF Print E-mail
User Rating: / 1
PoorBest 
Written by Maury Brown   
Sunday, 19 November 2006 11:00
Andrew ZimbalistBaseball knows a good thing when they see it. When the 2002-2006 CBA was brokered at the 11th hour, it marked the first time since the formation of the MLBPA and the collective bargaining process that some form of work stoppage did not occur. Because there was labor peace, and because provisions such as revenue-sharing were adjusted and the Luxury Tax introduced, MLB has flourished. So much so that this year sees projections in excess of $5.2 billion in revenues--a staggering figure.

2007 will mark the beginning of a new Basic Agreement that will further work to extend this unparalleled growth. There were inadequacies in certain aspects of the last Basic Agreement, namely the revenue-sharing component.

One person who has worked on the economics of the new agreement--specifically the revenue-sharing component--is sports economist and author, Andrew Zimbalist. Zimbalist serves as Robert A. Woods Professor of Economics at Smith College, and has written several books on sports economics, including the recently released The Bottom Line: Observations and Arguments on the Sports Business and In the Best Interests of Baseball? The Revolutionary Reign of Bud Selig.

I interviewed Zimbalist in 2004 and have stayed in contact with him since. With the new CBA, the increased interest in the posting process and the Red Sox bidding $51.1 million for the rights to negotiate with Japanese pitching sensation Daisuke Matsuzaka, as well as other economic factors in baseball that have occurred since first interviewing Zimbalist then, I thought it was time to talk to him again, given his work on the new CBA.

In this interview Zimbalist talks of his overall impression of the new agreement, why the agreement was reached well in advance of the Dec. 19th deadline, whether new stadium development impacts revenue-sharing, his thoughts on possible expansion, whether revenue-sharing has been the catalyst for competitive balance, and much more.

Maury Brown for Biz of Baseball: What is your overall impression of the new Basic Agreement?  

Zimbalist QuoteAndrew Zimbalist: It is a significant improvement over its predecessor.  It lowers marginal tax rates for all teams.  It also realigns the marginal rates so the low revenue teams now pay basically the same rate as the high revenue teams (in practice the marginal rates now will vary between 30 percent and 32.5 percent).  Together, these two changes will undo the perverse incentives in the last CBA which should minimize the behavior of some teams not using their transfers to improve their onfield performance.  Moreover, a part of the sharing will be based on a fixed concept of revenue, so that the tendency to reward teams for their lack of success will be diminished.   These modifications should result in improved competitive balance and improved incentives to grow the league.  The new deal also eliminates the so-called cliff problem or mean discontinuity, whereby a team just above the mean revenue before sharing could end up with less net revenue after sharing than the team just below the mean before sharing.

BizBall: Much has been made of how smooth the new labor agreement was reached and how far in advance of the December 19th the sides came together to announce the memorandum of understanding. How much of this can be attributed to key deadlines, such as the expiration of the Luxury Tax and the rollback of penalties within the Joint Drug Agreement, compared to overall goodwill?

Zimbalist: I’m not sure I like either of your choices.  I think the main factors behind the smooth process this time were: (1) the unparalleled economic success of MLB in recent years; (2) the growing ability of the negotiators on each side to understand the concerns and priorities of the other side; (3) the success of Bud Selig in fashioning a functional degree of coherence among the owners; and (4) the lasting effects of the chastening of both sides from the devastation of the 1994-95 work stoppage.

BizBall: The Yankees, Mets, and now it appears, the A’s will all have new facilities that will come online during this new agreement. Given the fact that clubs can still write off a portion of their revenue-sharing obligation by constructing new facilities, is this a concern that the total amount collected for revenue-sharing purposes will be lessened?

Zimbalist QuoteZimbalist: Again, there is a false premise in your question.  The total amount of revenue sharing should increase with the new stadiums.  The total sum shared is based on what would be shared under a straight pool distribution at 48 percent, given the level of net defined local revenue (NDLR).  NDLR basically is local revenue minus local team stadium expenses (with some tricky accounting rules along the way).  A team would not invest in a new stadium unless it expected its new revenues to exceed its new expenses.  So new stadiums should result in higher NDLR, and, hence, higher sharing.  

The new deal actually has a special provision that, in effect, reduces the deduction allowed to teams with new stadiums, but it is too complex to go into here.


BizBall: The longest stretch between expansions in the modern era has been 11-years. Given the unparalleled growth in MLB, is it possible that expansion might be a consideration for the league within timeframe of the new Basic Agreement?

Zimbalist: I would like to see expansion, but I think that the growth of revenue sharing has made the owners even more leery of it than before.  High-revenue team owners now see new teams as potential claimants on their revenue.  Low-revenue team owners see new teams as diluting the pool of revenue transfers.  My sense is that expansion would come only after the application of effective political pressure and I don’t see that materializing anytime soon.

BizBall: The league has said that revenue-sharing is a chief catalyst for the competitive balance we have been seeing over the past several seasons. How much of this balance is attributed to revenue-sharing, and how much of it can be attributed to factors such as the introduction of the Wild Card?

Zimbalist: I think that the bulk of the improvement since the late nineties to the present is attributable to the Wild Card and other factors.

MatsuzakaBizBall: This off-season sees far more interest in the posting process given the Red Sox submitting a bid figure of $51.1 million, simply for the right to negotiate for his services. Many fans may wonder if the posting process impacts overall player payroll, which in turn relates to the luxury tax thresholds, etc. What, if any, impacts come with the posting process?

Zimbalist: The net impact of the posting system is probably inflationary for two reasons.  First, it brings more of the world’s top players into MLB.  Some GMs say Matsuzaka might be the best pitcher in baseball next year.  Second, the total price the Sox will pay for Matsuzaka, if they sign him, will be $51.1 million plus his salary.  The bid of $51.1 million does not count as payroll for purposes of the luxury tax.  Although the posting system structurally is set up so as not to grant free agency rights to the posted player, it is likely that Scott Boras will be seeking free agent type money for his client.  In a free agent environment, Matsuzaka would be worth roughly as much as some of the top salaried pitchers today (e.g., Randy Johnson at $16 million a year).   But let's say since teams are not bidding against each other, Boras would settle for $48.9 million over four years.  If the Red Sox went along (and I doubt they would),  the team's total payment for his services is $100 million over four years, putting him in A-Rod territory.  But only the $48.9 million (or $12.225 million per year) will be potentially subject to the 40 percent luxury tax.  This is a bargain, in a sense, and induces the Sox to offer more money for the player.

BizBall: Finally, will baseball be able to sustain its 11 percent annual growth rate during the coming CBA?

Zimbalist: This is a good question.  On the one hand, many of the structural sources of growth have weakened: the appearance of Fox as a national network bidding for sports rights; the emergence of ESPN and RSNs bidding for sports rights; the construction of gentrified ballparks in city centers with the attendant explosion of corporate Zimbalist Quoterevenues, and, the growth of the internet and the associated streaming of games and merchandising.  On the other hand, MLB’s new CBA will better incentivize teams to innovate and grow revenues, the Yankees, Mets, Nationals and the A’s promise to have new ballparks in two to three years, MLBAM growth continues to be explosive, yield management ticketing strategies are being developed, and the overall management of the game continues to improve.  There is also the issue of how baseball’s changing accounting procedures will recognize the revenues of related parties.  Finally, part of the revenue picture will be determined by factors outside MLB’s control, such as the performance of the national economy – a matter about which I am not terribly sanguine over the intermediate term.  If I had to make a projection, it would be for industry growth rates on the order of 8 to 10 percent annually over the term of the new CBA.


  • Interview conducted by Maury Brown

To read other interviews on The Biz of Baseball with the likes of Jayson Stark, Ken Rosenthal, Stan Kasten, Marvin Miller, Bowie Kuhn, Bob Costas, and others, select the Interviews navigation element to the left on any page.

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?